|April 29, 2014|
Previously published on April 2014
The past few years have seen a surge of high yield debt (“HYD”) issuances. By some accounts, issuers sold more than $400 billion in HYD in 2012 and more than $500 billion in 2013, and the HYD markets are off to a healthy start in 2014. With yields on U.S. Treasuries, money market funds, and other investments depressed as a result of unprecedented monetary policy in the U.S. and EU, demand for HYD products continues to rise, fueled by yield-seeking investors. This increased demand has caused HYD bond prices to rise and yields to fall.